Treasury's $14.3M Coinage Material Contract Awarded to Wieland Rolled Products
Contract Overview
Contract Amount: $14,305,725 ($14.3M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2008-07-24
End Date: 2012-09-30
Contract Duration: 1,529 days
Daily Burn Rate: $9.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: PROVIDE BASE MATERIAL FOR CIRCULATING COINAGE
Place of Performance
Location: EAST ALTON, MADISON County, ILLINOIS, 62024
State: Illinois Government Spending
Plain-Language Summary
Department of the Treasury obligated $14.3 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE MATERIAL FOR CIRCULATING COINAGE Key points: 1. The contract for nonferrous metal rolling for coinage was awarded to Wieland Rolled Products North America, LLC. 2. This represents a significant portion of the Mint's material procurement for circulating coinage. 3. The fixed-price contract with economic price adjustment introduces some cost volatility risk. 4. The sector is dominated by a few large metal suppliers, indicating potential concentration.
Value Assessment
Rating: good
The contract's fixed price with economic price adjustment suggests an attempt to balance cost certainty with market fluctuations. Benchmarking against similar metal supply contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is listed as 'COMPETITIVE DELIVERY ORDER', but details on the specific competition method and the number of bidders are not provided. This lack of transparency hinders a full assessment of price discovery.
Taxpayer Impact: The use of competitive processes, even if not fully detailed, aims to secure favorable pricing for taxpayers. However, the economic price adjustment clause could lead to higher costs if metal prices surge.
Public Impact
Ensures the availability of essential metals for producing U.S. currency. Supports the operational needs of the United States Mint. Potential impact on the price of circulating coins if material costs rise significantly.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Economic price adjustment clause may increase costs.
- Limited transparency on competitive bidding process.
Positive Signals
- Secures critical supply chain for coinage.
- Long-term contract provides stability.
Sector Analysis
This contract falls within the nonferrous metal rolling sector, crucial for manufacturing. Spending benchmarks are difficult to establish without comparable government contracts for similar specialized metal products.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. The supplier, Wieland Rolled Products, is a large industrial entity.
Oversight & Accountability
The United States Mint, under the Department of the Treasury, is responsible for this procurement. Standard government oversight processes would apply, but specific oversight details are not provided.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential for cost overruns due to economic price adjustment.
- Lack of detailed competition information.
- Dependence on a single supplier for a critical component.
- Limited visibility into small business participation.
Tags
nonferrous-metal-except-copper-and-alumi, department-of-the-treasury, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $14.3 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC. PROVIDE BASE MATERIAL FOR CIRCULATING COINAGE
Who is the contractor on this award?
The obligated recipient is WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $14.3 million.
What is the period of performance?
Start: 2008-07-24. End: 2012-09-30.
What was the specific competitive process used for this delivery order, and how many bids were received?
The provided data lists the contract type as 'COMPETITIVE DELIVERY ORDER' but lacks specifics on the bidding process or the number of offers received. Further investigation into the contract file or agency records would be required to ascertain these details and evaluate the effectiveness of the competition in achieving optimal pricing.
How does the economic price adjustment clause typically impact the final cost of materials for the Mint?
The economic price adjustment clause allows for modifications to the contract price based on fluctuations in specified economic factors, such as the cost of raw materials. This can protect the contractor from unforeseen cost increases but may lead to higher overall spending for the government if market prices rise significantly during the contract period.
What is the benchmark cost per pound or ton for the nonferrous metals procured under this contract?
A specific per-unit cost benchmark is not available in the provided data. To establish one, one would need to analyze historical pricing for similar nonferrous metals procured by the Mint or other government agencies, considering market conditions and metal type at the time of award.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: KPS Capital Partners, LP (UEI: 071159078)
Address: 427 N SHAMROCK ST, EAST ALTON, IL, 13
Business Categories: Category Business, Labor Surplus Area Firm, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $14,305,725
Exercised Options: $14,305,725
Current Obligation: $14,305,725
Parent Contract
Parent Award PIID: TMHQ08C0006
IDV Type: IDC
Timeline
Start Date: 2008-07-24
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2011-03-30
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